1. Field of the Invention
The field of the invention is data processing, or, more specifically, methods, systems, and products for controlling electronic withdrawals by a transaction processor.
2. Description of Related Art
Electronic withdrawals are typically effected through a withdrawal device such as an Automatic Teller Machine (‘ATM’) and Point-of-Sale (‘POS’) Terminals. An ATM is an electronic device that allows a customer to make cash withdrawals and check account balances at any time without the need for a human teller. Many ATMs also allow people to deposit cash or checks, transfer money between bank accounts, or even buy postage stamps. A ‘Point-of-Sale’ is a location where electronic withdrawals from customer accounts are performed with the customer present, such as a retail store. The customer typically presents a debit card or check card which is then read magnetically, and the customer's signature often is obtained as additional authentication and authorization for the transaction. A ‘POS terminal’ is the electromechanical equipment used to capture, transmit and store data implementing electronic withdrawals through debit card and check card transactions at the point of sale. In this specification, ATMs and POS terminals are referred to generally as ‘withdrawal devices.’
In the mid-1970s, a few banks, that is, ‘drawees,’ made ATMs available outside their walls as a convenience, so their customers could get cash after hours. The idea was so popular that almost every bank branch installed one. Then, a couple of competing local banks connected their ATMs electronically, that is, through an electronic data communications network, allowing customers, that is, ‘drawers,’ to get money from an ATM owned by a bank other than their own.
Local networks merged and got larger, becoming known as shared EFT (Electronic Funds Transfer) networks. They transferred information and money over communication lines—like the Internet does today. Banking rules eased, banks extended their branches into other states, and the placement of ATMs grew. Regional networks formed, with dozens in existence by the mid-1980s. The networks were owned primarily by banks, savings and loans, or credit unions, all examples of ‘drawees’ in the terminology of this specification.
Business and travel in the United States escalated, and cardholders demanded more access to their bank accounts. Regional networks didn't reach far enough, and national networks were formed. The national networks enabled ATM owners—banks, merchants, Independent Sales or Service Organizations (ISOs) and distributors—wanted to reach more cardholders with a single network. The national networks also provide economies of scale, costs are spread across more ATMs. The Riegle-Neal Interstate Banking and Branching Efficiency Act took effect in the last quarter of 1995, expanding banks' ability to operate across state lines, increasing the usefulness of national networks. And the availability of national networks also enables interstate bank holding companies to reduce the number of networks they participate in. Today, most regions have a single, dominant network through which transactions pass to reach the national networks, such as Discover™ and American Express™. Plus™ and Cirrus™, for example, are networks operated respectively by Visa™ and MasterCard™.
In order for many, many banks, networks, ATMs, and POS terminals to all operate together smoothly in carrying out millions of electronic transactions, a common carrier that could clear transactions for every participant in the system was needed. This common job is carried out by ‘transaction processors.’ Transaction processors are computer systems coupled to transaction processing networks that provide the services of gathering account information from a customer bank, a drawee, upon receiving from a merchant's withdrawal device, ATM or POS terminal, a request for a withdrawal on behalf of a customer, a drawer, and authorizing a withdrawal or denying a withdrawal request. Services provided by a transaction processor upon receiving a withdrawal request include, for example, checking the PIN number, checking withdrawal limits, checking the expiration date on the debit card, and checking for sufficient funds in the customer account. Examples of transaction processors are Heartland Payment Systems, Inc., of Princeton, N.J., on the web at www.heartlandpaymentsystems.com, and Electronic Clearing House, Inc., of Camarillo, Calif., on the web at www.echo-inc.com.
Most major banks work with credit card companies to issue ‘debit cards’ or ‘check cards.’ Check cards effect electronic withdrawals in a format sometimes referred to as an ‘electronic check’ or ‘echeck.’ ‘E-check’ or ‘electronic check’ is a generic term for an electronic withdrawal from a customer account that is originated on the Internet, at a point of sale, over the telephone, or by a bill payment sent through the mail or dropped in an unattended dropbox. The terms ‘echeck’ and ‘electronic check’ are used to refer to several types of electronic transactions:                ACH-based electronic check. A payment that begins as a paper check is converted into, or truncated to, an ACH debit entry. The paper check is not processed.        Electronic network electronic check. A payment that begins as a paper check is converted into, or truncated to, an electronic network entry, using networks such as an ATM network or a credit card network. The paper check is not processed.        Internet- or telephone-initiated payments. A transaction that is initiated over the Internet or via phone, with the debit carried out by an electronic debit, usually an ACH debit. Some users categorize payments initiated via Internet or telephone but that are effected by paper drafts as electronic checks, even though the debit is paper-based.        Catch-all terms used loosely to refer to any attempt to initiate payment through PCs, the Internet, ATMs, POS terminals, and other computer systems.        
There are some differences between a check card and a traditional ATM card: A check card has a customer name, account number, an issuing company's logo, a bank's logo, and “Check Card” printed across the front of it. An ATM card has only customer name, account number, and the bank's logo on the front of it. Both cards have magnetic strips on the back for an authorized cardholder to sign on. A check card company, such as Visa, for example, has agreements with banks to issue check cards that look like a Visa credit card. Such a Visa check card can then be used at any retailer that accepts Visa credit cards and at ATMs worldwide.
Like ATM cards, check cards function as debit cards, effectively deducting money more or less directly from a customer's account. Although a traditional ATM card can only be used at an ATM machine (and some grocery stores), customer's can use a check card at any retailer that accepts credit cards. In fact, a check card can be used in the same manner as either a debit card or a credit card: When a customer tells the POS clerk that the card is a credit card, the customer is asked to sign a slip. When a customer tells the POS clerk that the card is a debit card, the customer is asked to enter a PIN number. Either way, the transaction amount is debited directed from the customer's account.
A cardholder makes an electronic withdrawal with a debit card or check card by providing the necessary information by means of a magnetic card reader and keypad of a withdrawal device, an ATM, a POS terminal, or some other withdrawal device. The withdrawal device forwards information to a transaction processor, either a third party vendor of debit processing services or the bank or other institution that issued the card. The entity that carries out the transaction processing causes an electronic funds transfer to take place from the customer's bank account to the transaction processor's account. Once the funds are transferred to the transaction processor's bank account, the transaction processor sends an approval code to the withdrawal device authorizing the transaction, for example, a cash withdrawal at an ATM or a sale of goods at a POS terminal. The transaction processor then clears the cardholder's finds into the merchant's bank account through an Automated Clearing House (‘ACH’) transaction, usually the next bank business day. An independent transaction processor can access any bank or other financial institution that makes accounts available for electronic withdrawals. An independent transaction processor also supports a large number of withdrawal devices placed with many different merchants.
An ‘account,’ as the term is used in this specification, is any demand account offered by any financial institution that supports electronic withdrawals including, for example, checking accounts, savings accounts, money market accounts, NOW accounts, other kinds of interest-bearing and non-interest-bearing demand accounts, and others as will occur to those of skill in the art. A ‘financial institution’ is any bank, savings association, savings and loan company, credit union, or other institution organized under national or state banking laws capable of offering accounts that support electronic withdrawals. In this specification, such financial institutions are referred to generally as ‘drawees.’
Today banks allow a customer to restrict electronic withdrawals according to withdrawal type, Fast Cash, checking, or savings. Banks also support maximum limits on withdrawals from a particular account during a particular period of time. In current methods and systems for electronic withdrawals, however, there is no provision for controlling electronic withdrawals according to drawer location, although it would be an advantage if there were.